Forecast: Smart Building Industry to Hit €91 Billion by 2031

By 2031, the global smart building sector is anticipated to reach a valuation of €91 billion, marking a significant leap from its 2021 valuation of €80.63 billion. This growth, characterised by a robust 22.11% CAGR from 2022 to 2031, is highlighted in a recent Adroit Market Research report.

The surge in IoT smart building adoption is fueled by the Internet of Things (IoT), enabling real-time management and monitoring of building operations through advanced sensors, connected devices, and automation technologies. Energy efficiency remains a pivotal factor, with companies striving to reduce energy consumption and greenhouse gas emissions. Smart buildings facilitate these goals by optimising HVAC, lighting, and other vital systems, leading to substantial long-term financial savings and a notable ROI for building owners.

Tenant comfort and the integration of buildings into urban infrastructure play crucial roles in enhancing living standards and operational efficiency. The integration of artificial intelligence (AI) and data analytics with smart building solutions introduces advanced functionalities and insights, catering to the specific needs of sectors like healthcare, retail, and commercial real estate.

The market's expansion is also propelled by the increasing popularity of building automation and control systems, centralising the management of various building systems to improve operational efficiency and occupant comfort. The development of software platforms that analyse data from smart building sensors offers valuable insights into space utilisation, maintenance, and energy management, enhancing decision-making processes.

The pandemic underscored the importance of remote management and monitoring of building systems, with remote access solutions gaining traction to ensure safety and operational continuity. Additionally, regulatory incentives promoting sustainable construction practices and the integration of smart technologies are accelerating market growth.

As urban populations grow, the demand for smart buildings within both residential and commercial sectors is on the rise, often aligned with smart city initiatives aimed at improving urban life. The market presents significant opportunities for businesses offering eco-friendly construction solutions and user-friendly platforms for centralised smart building system management, further driving the industry's expansion towards a smarter, more sustainable future.

Source: Inavate